Resolute invests C$590,000; C$5 million credit facility also planned
By Devika Patel
Knoxville, Tenn., Aug. 27 - Elgin Mining Inc. said it plans a C$2.95 million private placement of units.
The company will sell 24.6 million units of one common share and a half-share warrant at C$0.12 per unit. Each whole warrant is exercisable at C$0.20 for two years. The strike price is a 25% premium to the Aug. 26 closing share price of C$0.16.
Resolute Funds Ltd. will invest C$590,000.
Proceeds will be used for working capital and general and administrative purposes.
The company also said it has arranged a C$5 million 18-month 10% bridge loan credit facility with Sprott Resource Lending Partnership. The proceeds of the facility will be used to develop the Bjorkdal Mine and for working capital and general and administrative purposes.
Based in Vancouver, B.C., Elgin is a gold mining company.
| Issuer: | Elgin Mining Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$2,952,000
|
| Units: | 24.6 million
|
| Price: | C$0.12
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.20
|
| Investor: | Resolute Funds Ltd. (for C$590,000)
|
| Pricing date: | Aug. 27
|
| Stock symbol: | Toronto: ELG
|
| Stock price: | C$0.16 at close Aug. 26
|
| Market capitalization: | C$23.72 million
|
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